The Pros and Cons of Investing in Military Base Properties
It’s time we address something that has been talked about by a lot of people lately: investing on military bases. While the idea could be brilliant, you also need to carefully dissect each aspect of it before you decide whether you want to give it a go. To help make it easier for you, let us break down the pros and cons.
Pros of Investing in Property Near Military Bases
Right off the bat, housing in military bases is recession-resistant, which is always a good thing. This is also beneficial because you'd get tax exemptions for members of the service housing.
Another advantage is security in payment. Commanders will step in whenever a service member misses a payment so you can be sure that you will be paid.
If you are concerned about the cleanliness of your real estate, most military tenants are generally clean and organized, so the destruction of your property should not be a problem for the most part.
Military bases can potentially grow, especially during times of conflict. This means that as the number of personnel increases, your potential tenants would also increase.
Cons of Investing in Property Near Military Bases
One downside to investing near military bases is accepting the reality that the length of your tenants’ stay will be short—usually around two to three years on average.
Another downside is that tenants have the right to break the lease or cut their lease short due to relocation assignments—and they cannot be penalized for it.
Furthermore, you also need to educate yourself about the base and its closure potential to assess where your investment stands should the base shrink or be closed in the future.
Should You Invest?
It’s a matter of weighing both the pros and cons when it comes to investing in the military base and coming up with an appropriate strategy for sustaining your real estate business.